The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corp. (CVX), AstraZeneca PLC (AZN) and Arista Networks, Inc. (ANET). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Chevron’s shares have underperformed the Zacks Oil and Gas – Integrated – International industry over the past two years (-11.6% vs. +0.4%). The Zacks analyst believes that the energy major is highly exposed to the perils of oil price fluctuations.
Moreover, its planned acquisition of Hess Corporation faces regulatory scrutiny and legal challenges. Chevron has been a laggard compared to its European peers to jump onto the clean energy bandwagon.
However, Chevron has improved its cash from operations, allowing management to raise dividend regularly.
(You can read the full research report on Chevron here >>>)
AstraZeneca’s shares have underperformed the Zacks Large Cap Pharmaceuticals industry over the last six months (-12.5% vs. -5.3%). The Zacks analyst believes that AstraZeneca’s diabetes franchise faces stiff competition, while pricing pressure hurts sales in the respiratory unit.
Yet, alongside investments in emerging markets, key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra, Ultomiris and Farxiga should keep driving the company’s revenues. AstraZeneca’s pipeline is strong, with important pipeline data readouts lined up.
(You can read the full research report on AstraZeneca here >>>)
Shares of Arista Networks have outperformed the Zacks Communication - Components industry over the past year (+83.1% vs. +75.7%). Per the Zacks analyst, the company is benefiting from solid demand, driven by strong momentum in AI workloads, cloud networking and data center. Innovation in areas such as deep packet buffers, embedded optics and reversible cooling augurs well for its long-term growth.
However, Arista is up against some of the toughest competitors in cloud networking solutions. Customer concentration risk is also a concern.
(You can read the full research report on Arista Networks here >>>)
Other noteworthy reports we are featuring today include Equinix, Inc. (EQIX), CME Group Inc. (CME) and Workday, Inc. (WDAY).
Mark Vickery Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Key Drugs Aid AstraZeneca (AZN) Sales Amid China Inquiry
Chevron (CVX) to Gain Guyana Foothold with Hess Buy
Arista (ANET) Rides on Healthy Demand, Portfolio Strength
Featured Reports
Growing Regulated Base & Investments Aid FirstEnergy (FE) Per the Zacks analyst, FirstEnergy's investment of $26 billion through 2028, will strengthen its existing operations. The Energize365 program will boost its regulated transmission capabilities.
ZTO Express (ZTO) Benefits From Parcel Volumes, Expenses Ail The Zacks Analyst believes that increase in parcel volumes aids ZTO Express' express delivery services unit. However, rise in selling, general and administrative expenses remain a worry.
Dollar General's (DG) Defensive Product Mix Key to Growth Per the Zacks analyst, Dollar General's defensive product mix, value-creating efforts and store growth are key to market presence. Its commitment to better pricing and inventory aims to boost margins.
Improving Clearing and Transaction Fees Aid CME Group (CME) Per the Zacks analyst, CME is set to grow on higher clearing and transaction fees as market position, diverse derivative product lines and global reach drive volumes. However, escalating expense ails.
Centene (CNC) Rides on Strong Marketplace Unit Amid Rising Costs Per the Zacks analyst, Marketplace's rising membership and margin goals, several contract wins and acquisitions continue to drive Centene's revenues. However, elevated expenses remain a concern.
Illumina (ILMN) Gains on Strategic Execution, Macro Woes Ail Per the Zacks analyst, Illumina's new strategy focuses on deeper customer collaboration, continuous innovation and operational discipline. Yet, macroeconomic issues hurt its mid-throughput business.
Solid Data Center Demand & Expansions To Aid Equinix (EQIX) Per the Zacks analyst, the solid demand for interconnected data center infrastructure, recurring revenue model and strategic expansions is likely to benefit Equinix.
New Upgrades
Workday (WDAY) Benefits from Strong Customer Wins, AI Focus Per the Zacks analyst, solid traction across industries, including education, defense and healthcare is likely to boost Workday's top line. AI integration across the portfolio is a tailwind.
Diverse Investment Strategies Aid Artisan (APAM) AUM Growth Per the Zacks Analyst, Artisan Partners' diverse product offerings and investment strategies is likely to help attract investors and increase assets under management, thus aiding top line expansion.
Twilio (TWLO) Banks on Growing Active Customer Accounts Per the Zacks analyst, Twilio's continued focus on introducing products as well as its go-to-market sales strategy is helping it grow its active customer accounts, which is driving top-line growth.
New Downgrades
Soft Energy Solutions Unit, Project Delays Ail Fluor (FLR) Per the Zacks analyst, Fluor has been witnessing lower-than-expected contributions from the Energy Solutions segment. Also, cancellation of a large project and project delays are pressing concern.
High Costs & Bleak End-Market Demand to Hurt AGCO (AGCO) Per the Zacks analyst, weak demand in key end-markets as higher material costs will impact AGCO's results in the near term.
Lower IT Spending to Hurt Avnet's (AVT) Growth Prospects Per the Zacks Analyst, Avnet's growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid the macroeconomic headwinds.
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